British Virgin Islands company Qiao Xing Universal Telephone, Inc. announced its unaudited third quarter financial results for the three months ended September 30, 2008. Net sales of the company decreased by 31.5%, compared to the same period of 2007, and made US 102,5 mln (RMB 716.2 mln). However, gross profit increased 35.3% to the amount of US 47.7 mln (RMB 333.3 mln), the reason is the dramatic decrease of cost of sales.
Cost of sales made USD 54.8 mln (RMB 382.9 mln), representing a decrease of 52.1% from the same period of the prior year. Gross margin increased from 23.6% in the third quarter of 2007 to 46.5% for the same period of 2008. Net income was USD 2.5 mln (RMB 17.4 mln) in the third quarter of 2008, compared to net loss of RMB 9.6 mln in the third quarter of 2007.
Basic earnings per share of common stock for the third quarter of 2008 were USD 0.07 (RMB 0.49) – compared to basic loss per share in the amount of RMB 0.33 in the same period of 2007.
Commenting on the results, the Chairman of XING said they are satisfied with the results for the third quarter of 2008, namely by the increase of gross profit and net income, and the improvement in gross margin which can be attributable to the successful strategic shift to new high-end luxury VEVA brand in Qiao Xing Mobile Communication Co., Ltd., a main subsidiary of XING.
Net non-operating losses were USD 15.4 mln in the third quarter of 2008, representing an increase of 3.9% compared to the results of the third quarter 2007.